EA recent report has shown a large increase in expat buy-to-let business, figures show expats are increasing their portfolios as quickly as they can. This year has seen a surge of first time buy-to-let applications in January and February compared to the same period last year.

A new survey shows more than 50% of existing expat landlords are looking to increase their portfolios as they see very good profits in the long term. One of our expat landlords recently expanded his portfolio “I live in Belgium and have seen my property value here fall considerably over the last 5 years.”  “This is not the case in the UK with values and rents increasing year on year” “With such poor returns on my savings accounts I will be increasing my portfolio again when the right opportunity arises.”

At this present time all is in the favour of the landlord with low mortgage interest rates and stable rental incomes.  It has become much easier in the last 12 months for expats to be able to secure a mortgage if the required deposit levels are available.

Lenders are without doubt seeing this market place as a growth area and more and more deals are becoming available on a daily basis. If you are thinking of going into this area of investment call us and we will be pleased to talk over your options.

Buy to let mortgages

UK and expat landlords are reaping rewards from lower mortgage charges and longer fixed rate deals. The various products that are now available are vast and you should be very careful before deciding which deal meets your needs. We always recommend talking to a professional independent adviser as some deals are not quite what they seem.

Competition in the market place is forcing lenders to reduce charges and fees as well as offering longer fixed rate deals.

Need some assistance?

If we can help with your new mortgage please call one of our fully experienced independent advisers, we are here to help!

The Bank of England base rate has been unanimously held at 0.75% for the third time this year.

In the minutes the Monetary Policy Committee noted that there is still a weakness in the housing market.

They said: “Weakness in the housing market had also persisted, with housing investment having declined in Q4, the UK House Price Index having fallen at its fastest pace since mid-2011 in the three months to February, and the number of mortgage approvals for house purchase having fallen in March.

“That said, the total number of residential property transactions had been more stable. Secured household credit conditions were little changed, although high loan-to-value mortgage rates had continued to fall.

“Consumer credit growth had slowed further in March, to 6.4% on a year earlier, with evidence from the latest Credit Conditions Survey suggesting that that had partly reflected a continued tightening in credit availability.”

The Bank now expects Britain’s GDP to grow by 1.5% this year, up from 1.2% forecast in February, owing to a larger-than-expected boost from companies in the United Kingdom and the European Union building stocks ahead of the Brexit deadlines. However that boost is likely to be temporary.

Expat mortgage business is still growing fast

This financial year has seen more new expat mortgage business being conducted than this time last year and applications are still rising as the year progresses.

Expat mortgage rates still remain at a very affordable level fuelling the increase in business being done in all sectors of the mortgage market.

Can we help?

As expat mortgage specialists we offer a much-valued service to our client so please make contact if we can assist you.

EThere are many reasons to consider a re-mortgage especially if you are currently on the standard variable rate (SVR) but you should remain cautious as this is not always the correct action to take. Always seek professional independent advice as to the best way forward for yourself as your current plan may well have penalties.

The most popular re-mortgage reasons are listed below.

Securing a better rate of interest

Changing to a fixed deal to manage outgoings

Raising capital

Reducing current loans or credit cards

How a fixed rate can help you.

Expats are beginning to ask how a fixed deal can assist them now and in the future. Good news is there are still some very good deals available but who knows how long for.

A fixed rate mortgage will do exactly what it says on the tin! It fixes the payments you make to your lender for an initial period of time when the mortgage commences this is usually 2 – 5 years. These days mortgages change in structure frequently and it may be possible to get a longer period than 5 years, just ask what is available.

The benefit of a fixed rate deal is that it allows you and your family budget properly, safe in the knowledge that your mortgage payment will not increase for the fixed period. This is really useful if cash flow is tight or you don’t want the uncertainty of payments increasing without warning.  This can be very comforting if you are an expat landlord running a business as you will know your fixed outgoings and your rental income.

If your budget is flexible and you have a surplus of funds each month you may be prepared to sacrifice the security of a fixed rate. You may select to gamble that rates will reduce and select a variable or tacker type mortgage. To be honest this is unlikely with today’s low interest market but if rates increase then your decision to fix will be a very good one indeed.

Need some guidance?

Can we be of assistance with your new mortgage/re-mortgage we have fully qualified independent advisers waiting to help you.

EExpats are in ever increasing numbers trying to either get on the ladder or increase their current UK holding. The majority of expats see property in the UK as a “pension fund” or a way of laying financial security for the long term. Brexit has had it’s effect and will no doubt continue to do so until “the dust settles”.

Bricks and mortar have always been a national obsession. The wisdom that property is fundamentally a very good long-term investment has been passed down from generation to generation. To be honest over the years this wisdom has been very good advice and looks like being so for a good many years to come.

Expat mortgage applications are currently at an all-time high as they seek to establish a foothold onto the UK property market. It would seem that the high property prices do not deter the investor.

According to recently released figures UK property has been the most consistent performing market in the whole of Western Europe. It is therefore not surprising that so many people want to invest in an ever-shrinking market.

Property values have increased year on year for the last 10 years and look set to continue to do so albeit at a lesser rate.

Good time to buy in the UK?

The very quick and simple answer is yes.

The affordable properties that are available to purchase seem to be diminishing on an annual basis, which without doubt will mean higher prices to pay in the future. The good thing is there are still some very good mortgage deals around for expats so it could be the right time to start your search.

Need assistance?

If you require help with your current or new mortgage please call one of our experienced advisers who will be happy to assist.

EThe mortgage market in Britain is experiencing a notable change as the reasons why expats re-mortgage evolves. Expat UK home owners are moving away from short term deals and variable rates onto two and five-year fixes at low rates in moves to guarantee certainty and financial security, according to the latest reports.

Only 17% of expat owners re-mortgaged to lower their monthly repayments in December last year compared to 21% in September. 15% re-mortgaged to increase the size of their overall loan in December, a fall from 19% in September.

The analysis suggests that instead of re-mortgaging to lower monthly repayments or borrow extra money, expats appear to be nervous about interest rates increasing and re-mortgaged onto long term deals for certainty and financial security. Just 2% of re-mortgagors predict interest rates to fall in the next year, with the remaining 98% expecting rates to either stay the same or rise. The Brexit situation is without doubt having a say as to how people see the next few years panning out.

Over a third, some 37% fixed onto a longer-term deal in December and January, the greatest since numbers were first tracked, and a significant increase from 7% who previously had a fixed five-year product.

This is a meaningful change in expat behaviour when re-mortgaging. Typically, over the last year, people were re-mortgaging to save on their monthly repayments or borrow additional funds. Instead, with rates low and expectations of a rate rise high, expats are fixing for longer for added financial security.

Expats it would seem are taking shelter from future rate rises and preparing for potentially turbulent times to come. The way people borrow is changing, there is a significant decline in interest-only and variable rate deals, fixing for longer appears to be the top priority.

Can we help?

If you are looking for a new or re-mortgage please do make contact and one of our qualified advisers will be happy to assist.